Tech Update

Although it might sound far away, the year 2025 is less than a decade from now. When you consider how much can... More happen in just a decade, it can boggle the mind. Consider that a decade ago, YouTube was launched, Trulia and Zillow had just been incorporated, and Facebook had only a few million accounts with only a few people seeing its true potential.

Predicting the future 10 years in advance is difficult enough, but in the real estate business it can be even more problematic considering all the changes that might occur. However, there are some basic truths to the real estate market that have been around for many decades and will continue to apply into the future. So, here are my predictions as to what the future will hold for real estate investing.

Detailed data

When you consider that amount of data available today, it will be many fold that by the year 2025. In 10 years, every piece of land and property will be fully listed and online. A standardized process will be in place so that everyone can access the same data. Plus, whenever a change occurs in the status of a property it will be documented and updated in real time. This system means that off-the-market properties will be less available, if nonexistent.

Development plans

The development plans for cities and regions of the country will not only be available today but will be published 10 years in advance. You will also find statistics for every neighborhood published every quarter, as well. In fact, we might reach a point where they update almost instantly.

Rankings for professionals

Every player will have a track record and ranking from their clients. Websites such as “Rank My Agent” have already started ranking agents today, but this will extend to developers, management companies, constructors and anyone who is part of the game.

The access will be instant, and the information regularly updated.

If we assume that all the data is present and available on a basis that is far more immediate than today, there will be certain ramifications that will need attention.

Pricing of properties

Currently, Zestimate carries online estimates of properties. However, in 2025 there will be an accurate market valuation that will change on a daily basis about the value of the property itself. This means that factors such as supply and demand, new developments and other rates will have a tangible impact on the current value of properties. The same will be true of building valuations, as they will be available in real time also.

New projects

One of the most interesting aspects 10 years from now will be how new projects will get off the ground so much faster than ever before. Because the data will be available in almost real time combined with advanced analyzing tools, the costs and sales prices for any project will be known almost instantly. This instant information will mean that the risk factors that come with any project will be better ranked and understood. As the technology advances, the knowledge increases to the point where risk becomes a much more manageable factor.

Financing

The world of financing will be altered as well given the changes when it comes to the speed of information that will be present in 2025. There are three groups, in particular, that will change in new ways because of these advances.

Mortgages

The competition in this market will intensify as the peer-to-peer loans keep growing, and companies such as Lending Club will have a much larger piece of the action.

In fact, online mortgage markets will allow lenders to finish all the processes and procedures online so that they can get the best terms.

Lenda is an example of a company that is doing that right now, but it will spread based on its success. Also, foreign investors will get the same terms as local ones since their records will be more available, and cooperation between local and foreign lenders will improve dramatically.

This platform will only continue to grow, as Reality Mogul is demonstrating right now. They will become more legit and might even be available for nonaccredited investors. This method of financing will take up a larger proportion of the funding that is available.

Investment groups

#Investment groups# will become even more accessible to people in general. New platforms will allow investors to cooperate more easily and support the transaction process.

Buying

The ability to purchase homes will speed up and be easier to accomplish. Sites such as auction.com are the tip of the iceberg, as 10 years from now they will be far more common. Plus, the process will include obtaining the mortgage, hiring the constructor, as well as the management company and lawyer, all done online through a computer or mobile device.

Selling

This process will be easier as well with pricing becoming less of an issue thanks to all the details of the property being known. Sellers will be able to sell their properties by themselves far easier than before, and there will be no more traditional open house techniques because virtual tours will take over. Companies such as Matterport are already expanding their services in this regard.

Agents

Because more data, better #analytics and interfaces available to everyone, the agents will have to bring their “A” game in order to attract more clients. More transactions will take place online without the need for agents. So, the agents will have to know the technology and have a better connection to the marketplace. It will be crucial for agents to drive qualified leads online and convert them to sales in a more efficient manner in order to stay in business.

Development

The real estate game is going to be very different in 2025. There will be new tools for evaluating products, getting the funding, and planning and executing projects on a much faster basis.

However, the downside is that developers who use the technology will hang back, and margins will drop as new opportunities become available. The best developers with a proven track record will succeed more often in getting the funding they need.

It will certainly be a new world for real estate investing in 2025. Those who ride the wave of new technology will be the most prepared for the changes that will occur.

Omri Barzilay is the founder and CEO of Propcy Inc, which enable real estate investors at any level to invest like the pros. Propcy empower investors to make data driven decisions, by not just displaying data – but making sense of it. Omri started coding when he was 12th years old, and investing nine years later. In Propcy he combines his two biggest interests, real estate and technology. Omri writes about investing in NYC at blog.propcy.com.

You will notice #properties sprinkled in with discussions. This will allow you to see properties posted by your friends, by your group members, and within your areas of interest. For example...
- When you are scrolling in the All tab you will see the most recently updated properties.
- Within the... More Areas tab, you will see new properties in the areas you follow.
- When you click Friends you will see the properties your friends are posting.

Many new enhancements are rolling out over the next several weeks... Get excited.

Connected Investors
PS: Check out the #tech update# tag for updates on our platform and other real estate technologies. Less

With the Loan Calc app, you can easily calculate any component of a loan. You can also quickly substitute variables – like #interest rate# or payments per year - to visualize the way the loan is structured in a number of helpful ways. Available for the iPhone.

Similar apps include... More EZ Loan Pro ($0.99) and What If Loan Calculator ($0.99), which are available for the iPhone.

I started using a site that has really helped organize my brain called https://trello.com. If you are someone who operates though the use of 'to do' lists, you will love this #free software. Give it a shot and let me know what you think.... More This is your Monday morning #tech update#

Here is how you can use it in our #real estate# business.
-First take a picture of a document.
- Second upload it to a digital signing program like Dousing or Hellosign.
- Third sign the document using your finger on your phone.
- Fourth send it out.

Connected Investors Funding

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